Friday, September 20, 2013
Better borrowing figures
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

Public sector net borrowing in August was 13.2 billion, still very high, but down on the 14.4 billion figure for August 2012. Cumulative figures for the April-August period also suggest borrowing is on the way down: 46.8 billion versus 50.5 billion.

The idea that borrowing was stuck at around 120 billion a year is also challenged by the new figures: the 2012-13 deficit is now put at 115.7 billion, down 2.8 billion on 2011-12.

The figures suggest the public finances are benefiting from stronger activity. In April-August taxes on production (including VAT) were up 3.8% on a year earlier, while taxes on income and wealth were up by 3.3%. Over the same period government current expenditure was up by 2.6%. More here.